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Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit

Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit October 5, 2005 Donnell Butler David Carroll Carrie-Ann Ferraro. Organization of Presentation. Introduction – 5 minutes State Analysis – 20 minutes Metropolitan Area Discussion – 5 minutes

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Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit

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  1. Energy Poverty and Household Wellbeing Atlantic City Electric / Delmarva Power Agency Summit October 5, 2005 Donnell Butler David Carroll Carrie-Ann Ferraro

  2. Organization of Presentation • Introduction – 5 minutes • State Analysis – 20 minutes • Metropolitan Area Discussion – 5 minutes • Local Area Analysis – 10 minutes • Indicators of Wellbeing – 10 minutes • Conclusion – 5 minutes • Questions / Feedback – 5 minutes

  3. Purpose of the Presentation • Furnish information about the energy needs of low-income households in DE, NJ, MD, and VA to policymakers and program managers • Explore the linkages among energy poverty and household wellbeing • Demonstrate how existing data sources can be used to obtain useful information for policy formulation and program design

  4. State Level Analysis Methodology

  5. State Information Needs • Policymakers and program managers need: • State-level cross-sectional data to understand current status for households in the state • State-level longitudinal data to understand trends for households in the state • National-level data to understand how those state-level energy needs compare to households nationwide

  6. State-Level Data Sources • 2000 Census Public-Use Microdata (PUMS) • Data available includes: • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation • Housing Unit Characteristics: age of unit, unit type, home ownership • Energy Data: Main heating fuel, energy expenditures

  7. State-Level Data Sources • 2002-2004 Current Population Survey, Annual Social and Economic Supplement (ASEC) • Statistical variances are too large for a single ASEC annual file to allow for a useful analysis for a single state. • Three-year average of 2002, 2003, and 2004 data used to estimate the FY 2003 LIHEAP eligible population • Data available includes: • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, household composition, employment, income program participation

  8. Definitions • LIHEAP Eligible/Low Income – Each state can set their own household income cutoff between 110% of the poverty level and the greater of 150% of the poverty level or 60% of state median income • Delaware – 200% of HHS Poverty Guidelines • New Jersey – 175% of HHS Poverty Guidelines • Maryland – 150% of HHS Poverty Guidelines • Virginia – 130% of HHS Poverty Guidelines Source: LIHEAP Clearinghouse State Fact Sheets

  9. Definitions • Energy Burden – Direct energy expenditures as a share of gross money income • Energy Gap – Difference between client energy burden and any target burden

  10. Limitations • Maximum Income Standard – Federal maximum income standard covers at least 50% more households • Renters – About 15% of households pay for part or all of their energy through their rental payments • Update – Information not updated for recent increases in energy prices and poverty

  11. State Level Analysis Findings

  12. Delaware LIHEAP Eligible Population Delaware LIHEAP Eligible Households (2000 and 2003) 1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2Source: Three-year Average of the CPS ASEC 2002-2004.

  13. Maryland LIHEAP Eligible Population Maryland LIHEAP Eligible Households (2000 and 2003) 1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2Source: Three-year Average of the CPS ASEC 2002-2004.

  14. New Jersey LIHEAP Eligible Population New Jersey LIHEAP Eligible Households (2000 and 2003) 1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2Source: Three-year Average of the CPS ASEC 2002-2004.

  15. Virginia LIHEAP Eligible Population Virginia LIHEAP Eligible Households (2000 and 2003) 1 Source: 2000 Decennial Census PUMS 5 Percent Sample. 2Source: Three-year Average of the CPS ASEC 2002-2004.

  16. State LIHEAP Recipient Population State LIHEAP Eligible and Recipient Households (2003) 1 Source: Three-year Average of the CPS ASEC 2002-2004. 2 Source: LIHEAP Household Reports FY 2004 (Heating).

  17. Energy Burden • Percent of total household income spent on total residential energy. • At the national level, the median residential energy burden was 3 percent for all households and 10 percent for all low-income households in 2003.

  18. Delaware LIHEAP Eligible Energy Burden Energy Burden for Delaware LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  19. Maryland LIHEAP Eligible Energy Burden Energy Burden for Maryland LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  20. New Jersey LIHEAP Eligible Energy Burden Energy Burden for New Jersey LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  21. Virginia LIHEAP Eligible Energy Burden Energy Burden for Virginia LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  22. Energy Gap • The dollar amount needed to reduce a customer’s energy burden to an amount equal to a specified energy burden percentage. • At the national level, about $4.9 billion dollars in energy assistance would have been needed to ensure that no low-income household spent more than 15% of income on residential energy in 2003. The amount required to reduce residential energy bills to 25% of income was $2.7 billion.

  23. Delaware LIHEAP Eligible Energy Gap Energy Gap for Delaware LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  24. Maryland LIHEAP Eligible Energy Gap Energy Gap for Maryland LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  25. New Jersey LIHEAP Eligible Energy Gap Energy Gap for New Jersey LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  26. Virginia LIHEAP Eligible Energy Gap Energy Gap for Virginia LIHEAP Eligible Households (1999) Source: 2000 Decennial Census PUMS 5 Percent Sample.

  27. DelawareEnergy Assistance 1 2000 Decennial Census PUMS 5 Percent Sample. 2FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm

  28. MarylandEnergy Assistance 1 2000 Decennial Census PUMS 5 Percent Sample. 2FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm

  29. New JerseyEnergy Assistance 1 2000 Decennial Census PUMS 5 Percent Sample. 2FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm

  30. VirginiaEnergy Assistance 1 2000 Decennial Census PUMS 5 Percent Sample. 2FY 2004 LIHEAP Grantee Survey for FY 2004. 3 LIHEAP Clearinghouse: http://www.liheap.ncat.org/Supplements/2004/supplement04.htm

  31. State LIHEAP EligibleSummary of Findings • Across all states • Increases in LIHEAP eligible population • LIHEAP participation rate below 28% of eligible population • Approximately half of LIHEAP eligible have energy burdens greater than 10 percent. • Combination of federal and state-level funds not enough to ensure that no LIHEAP eligible household spends more than 10% of income on energy.

  32. Metropolitan Area Discussion Methodology

  33. Metropolitan Area Information Needs • Metropolitan area policymakers & program managers need: • Information related to demographic characteristics and energy needs of low-income households • Information on the relationship between energy needs and other low-income needs, including housing, to promote the integration of programs aimed at assisting low-income households

  34. Data Sources for Metro Area Analysis • American Housing Survey (AHS) Metropolitan Area Samples • Metropolitan Area Samples have sufficient numbers of LIHEAP eligible records • Estimates are not available at the state level from the national AHS sample • Several Metropolitan Areas are surveyed each year on a rotating basis • Local MSAs: Baltimore, MD (1998), Norfolk-Virginia Beach-Newport News, VA-NC (1998), Northern NJ PMSAs (2003), Philadelphia, PA-NJ PMSA (2003), Washington, DC-MD-VA MSA (1998)

  35. Data Sources for Metro Area Analysis • American Housing Survey (AHS), Metropolitan Area Samples(continued) • Data available includes: • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, household composition, • Energy Data: Main heating fuel, energy expenditures, heating and cooling equipment • Housing Unit Characteristics: unit type, home ownership, housing adequacy, housing costs

  36. Neighborhood Level Analysis Methodology

  37. Neighborhood Information Needs • Local program managers need local-level information about the population in their communities in order to: • Effectively implement programs • Target outreach initiatives • Improve integration of energy assistance programs with other programs designed to assist low-income households

  38. Neighborhood Data Sources • 2000 Census Summary File 3 (SF3) • Data available includes: • Household Demographics: income level, age of householder, race and ethnicity, languages spoken, household composition, income program participation • Housing Unit Characteristics: age of unit, unit type, home ownership • Energy Data: Main heating fuel • Data is limited to entire population; does not offer estimates of LIHEAP eligible population

  39. Neighborhood Data Sources • 2000 Census Special Tabulations • Estimates of the LIHEAP eligible population can be obtained from the Census Bureau for small areas, including Census Blocks, Block Groups, and Tracts • Data available includes: • Household Demographics: income and poverty level, presence of vulnerable members, race and ethnicity, languages spoken, household composition, employment, income program participation • Housing Unit Characteristics: age of unit, unit type, home ownership • Energy Data: Main heating fuel, energy expenditures

  40. Neighborhood Level Analysis Findings

  41. Wilmington DE Map

  42. Eastside Neighborhood Map

  43. EastsidePoverty Level Poverty Level of Eastside in Wilmington, DE Households (1999)

  44. EastsideHousing Tenure Housing Tenure: Eastside in Wilmington, DE Households (2000)

  45. EastsideNumber of Units in Structure Number of Units in Structure: Eastside in Wilmington, DE Households (1999)

  46. EastsideYear Structure Built Year Structure Was Built: Eastside in Wilmington, DE Households (1999)

  47. EastsideHousehold Size Household Size: Eastside in Wilmington, DE Households (2000)

  48. EastsideHome Heating Fuel Home Heating Fuels Used: Eastside in Wilmington, DE Households (1999)

  49. EastsideLIHEAP Eligible Summary of Findings • Below 200% of Poverty: North – 52%, Central – 67%, South – 72% • Renters: N – 59%, C – 80%, S – 94% • Large Multi-unit Structures: N – 6%, C – 51%, S – 52% • Built Prior to 1960: N – 81%, C – 32%, S – 36% • 4+ person Households: N – 29%, C – 18%, S – 32% • Electric Home Heating: N – 21%, C – 34%, S – 67%

  50. Indicators of Wellbeing Analysis Methodology

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